Kenvue Reports Q2 Performance

Happi 2023 Top 50 company, Kenvue Inc.— home to Neutrogena, Listerine, Aveeno and Tylenol—has reported its results for the fiscal second quarter ended July 2, 2023. This is the first release of its financial performance since becoming a standalone operation.

On a reported basis, net sales in the second quarter of 2023 were $4.0 billion, a 5.4% increase versus the prior year period. Foreign currency fluctuations negatively impacted net sales by approximately 2.3%. Organic growth increased 7.7%.

The increases in net sales and organic growth were primarily driven by value realization (defined as price including mix), increased demand across Kenvue’s pain care and cough, cold and flu product categories resulting from higher cold and flu incidences, and sequential share gains in sun care fueled by innovation and improved supply.

Organic growth was comprised of 9.4% value realization and 1.7% volume decline. Excluding the impact of intentional strategic portfolio rationalization initiatives and the decision to suspend the sale of personal care products in Russia, volume was about flat.

“Our second quarter results mark a strong debut for Kenvue, reflecting the strength of our portfolio of iconic brands, the agility of our operating model and the strong execution of our 22,000 team members while navigating a dynamic environment,” said Thibaut Mongon, CEO and director. “We are proud to have recently completed our initial public offering, and we look forward to continuing to drive sustained value creation and to helping people around the world to realize the extraordinary power of everyday care.”

On a reported basis, gross profit margin was 55.5% vs 56.7%% in 2022. Adjusted gross profit margin, which excludes amortization of intangible assets and restructuring expenses, was 57.5% vs 59.3% in 2022. Favorable value realization and supply chain productivity improvements offset sustained higher cost inflation, while foreign currency fluctuations negatively impacted Adjusted gross profit margin during the quarter.

Kenvue expects fiscal 2023 reported bet sales growth to be in the range of 4.5-5.5%. The company expects fiscal 2023 organic growth in the range of 5.5 -6.5, which reflects the benefit of unique items impacting the first half of fiscal 2023, including the one-time restocking benefit realized in the first quarter of 2023 and high cold and flu incidence rates which benefited the self care portfolio through the first half of 2023.